Flexible approach in domestic budget revenue collection

(ĐN)- According to the 2024 state budget revenue plan, Dong Nai has set a target of collecting over VND 56.1 trillion, with domestic revenue accounting for more than 68% of total state revenue. To meet this target, the Dong Nai Tax Department has adopted flexible management measures.

Taxpayers completing procedures at the tax office.

Case-by-case flexibility in tax management
Since early 2024, the Dong Nai Tax Department has strengthened tax management, particularly through flexible application of audit and inspection (AI) measures for taxpayers.

Statistics from the department show that in the first half of 2024, over 1,800 tax audits and inspections were conducted—more than 820 onsite at enterprises, and over 1,000 conducted at tax offices.

These activities aim to verify taxpayers’ compliance and identify violations for strict handling. Results showed the overall violation rate was not high, but some cases still revealed violations or signs of non-compliance.

For example, through inspections at the tax office, authorities discovered that N.R Vietnam Co., Ltd., a foreign-invested enterprise in Bien Hoa 2 Industrial Park, had committed tax violations. The total tax arrears, fines, and late payment interest amounted to nearly VND 26 billion. Similarly, S.Y Vietnam Co., Ltd., also in Bien Hoa 2, was fined over VND 36.4 billion.

For 2024, Dong Nai is tasked with collecting VND 38.3 trillion in domestic revenue, including VND 3.6 trillion from land use fees and over VND 1.8 trillion from lottery activities.

Nguyen Van Ton, Deputy Head of Inspection Department 2, stated that their auditing plan focuses on sectors with significant revenue potential such as oil and gas, insurance, pharmaceuticals, and construction; large-scale enterprises not inspected in recent years; businesses involved in capital transfer, brand/project transfer, merger/split activities, or at risk of VAT refunds.

The department collects extensive data from businesses to evaluate risks, then filters and selects high-risk or suspicious cases for inspection, while recommending appropriate penalties as per regulations.

Overcoming difficulties to meet revenue targets
Despite positive results, tax administration still faces various challenges. In particular, tax debt has been increasing, with the recoverable debt ratio remaining high compared to assigned targets. Although the department has implemented debt recovery measures, some entities still owe large amounts, mainly due to land-related payments, mineral resources, or errors in foreign currency declarations.

Vu Anh Cuong, Head of the Debt Management and Tax Enforcement Department, said the situation is particularly complicated in sectors like land and minerals. Even after publishing the list of overdue tax debtors, the situation has not improved significantly. Rising tax debt hampers the ability to ensure sufficient budget collection.

Additionally, managing risky invoices remains difficult. Tax violations persist in various forms, including technology-related fraud and impersonation of tax officials, which complicate enforcement efforts.

To fulfill 2024’s year-end revenue goals, Nguyen Toan Thang, Director of the Dong Nai Tax Department, said they will continue to closely monitor revenue progress, with detailed analysis by locality, region, and tax category. Simultaneously, efforts to review tax exemption/reduction, payment extensions, and active collection will be enhanced.

Audit, inspection, declaration management, and tax debt enforcement measures will continue to be implemented in line with legal regulations. Furthermore, the tax department will cooperate with other departments, including land registration offices, to advise the provincial People’s Committee on removing procedural and policy bottlenecks for project implementation.

The department will also review all land-related projects arising in the year to ensure timely and complete collection of land revenues for the state budget.

Ngoc Lien